MAINTAINING COMPETITIVE ADVANTAGE
THROUGH THE STRATEGIC INTEGRATION OF
WOMEN INTO IMPALA PLATINUM MINING
Mathias Sithole
Mini-dissertation submitted in partial fulfilment of the requirements for the
degree Masters in Business Administration
at the Potchefstroom campus of the North-West University
Supervisor: Ms K. Nell
November 2008
ACKNOWLEDGEMENTS
My sincere thanks and appreciation to the following:
My Lord above, who gave me strength and perseverance to complete this study despite serious injury and an operation done to fix my badly torn ligaments. My wife Manorah and son Sibusiso, who had to make great sacrifices, endured long lonely hours, and supported me throughout my studies.
The senior management of Impala Rustenburg Operations, who supported this study and afforded me time to attend lectures, including Mr Pieter Anderson and Hans Baasden.
Mr Pieter Anderson, who organised me a trip to the USA where I got to meet women in Mining at the Las Vegas Mining Expo.
All my colleagues that contributed to this study in terms of insight, advice and support,
Mrs. Karolien Nell, my study leader, for her support and guidance.
ABSTRACT
Consider how hard it is to change yourself and you'li understand what little chance you have in trying to change others.
Jacob M. Braude (2008)
Women were not allowed to work underground until the ban was lifted by the Mines Health and Safety Act of 1996 (SA, 1996b). In the years that followed, the numbers of women working on the mines remained low. These low figures triggered the Government through the Department of Minerals and Energy (SA, 1996c) to introduce the Mining Charter to boost the advancement of women. This initiative was not to be without problems and business implications.
The aim of this mini-dissertation was to investigate change management issues regarding the introduction of women to a somewhat gender-insensitive culture and workplace. The literature study examines the problem in general, and the empirical study was performed at Impala Platinum Holdings Limited as a case study. The empirical study was done through a questionnaire administered to respondents of the sample to ascertain the extent of the problems and an in-depth study of company statistics. The aim of studying company statistics was to ascertain whether Impala was showing any signs of losing competitiveness in terms of productivity, profit margins and safety as a result of the phasing-in of women in the Mine.
The results of the empirical study enabled the researcher to introduce recommendations that could be used to avoid mistakes made during the implementation of women working in the mines.
List of key terms: women, mining industry, change management, competitiveness, discrimination
Opsomming
Vroue is nie toegelaat om ondergronds te werk totdat die verbod deur die Mynwerkersgesondheids en -veiligheidswet van 1996 ingestel is nie. In die jare wat hierop gevolg net, het die getalle vroue wat by die myne gewerk het, laag gebly. Hierdie lae syfers het die regering genoop om deur die Departement van Minerale- en Energiesake die Handves van Myne in te stel om vrouegetalle in die mynwese te bevorder. Hierdie skuif was nie sonder probleme nie en het besondere besigheidsimplikasies tot gevolg gehad.
Die doel van hierdie mini-verhandeling was om die bestuursveranderingkwessies ten opsigte van die inlywing van vroue in die mynwese te ondersoek in 'n omgewing wat tradisioneel 'n geslagsensitiewe kultuur in die werkplek gehad het.
Die literatuurstudie ondersoek die probleme in die algemeen, terwyl die empiriese studie as 'n gevallestudie behandel is by Impala Platinum (Edms.) Beperk. Die empiriese studie is gedoen deur 'n vraelys voor te le aan die respondent in die steekproef om te bepaal wat die aard van die probleme is, en ook deur 'n volledige studie van die maatskappy se statistiek te doen. Die doel van die bestudering van die statistiek was om te bepaal of Impala enige tekens van verslapping van mededingendheid in terme van produktiwiteit, winsmarges en veiligheid ingeboet het sedert die infasering van vroue in die Myn.
Die resultate van die empiriese studie het gelei tot die instelling van aanbevelings wat voorkomend geimplementeer kan word gedurende die voortgesette doelwitte van
Impala.
Lys van sleutelbegrippe: vroue, mynwese, veranderingsbestuur, diskriminasie, mededingendheid
TABLE OF CONTENTS
Abstract Opsomming List of diagrams List of tables List of graphs List of photographs IV ix ix X XCHAPTER 1: NATURE AND SCOPE OF THE STUDY
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
INTRODUCTION AND BACKGROUND PROBLEM STATEMENT
OBJECTIVES OF THE STUDY SCOPE OF THE STUDY METHODOLOGY LITERATURE STUDY EMPIRICAL STUDY LAYOUT 1 2 7 8 8 8 9 10
CHAPTER 2: LITERATURE STUDY
11
2.1 2.2 2.3 2.3.1 2.3.2 INTRODUCTION
MINE ORGANISATIONAL CULTURE CHANGE Organisational change Organisational transformation 11 11 13 13 14
2.3.3 Organisational culture 15 2.3.4 Organisational culture change 16
2.4 ORGANISATIONAL CHANGE MANAGEMENT 17 2.4.1 Organisational change management models 18
2.4.2 Immersion 23 2.4.3 Transforming leadership 24
2.5 RESISTANCE TO CHANGE 26 2.5.1 Managing resistance to change 30
2.6 MINING CHALLENGES 31 2.6.1 Challenges specific to women 31
2.6.1.1 Male-friendly environment 31 2.6.1.2 Physical capability 32 2.6.1.3 Menstruation 33 2.6.1.4 Pregnancy 33 2.6.1.5 Lactation 34 2.6.1.6 Sexual harassment 35
2.7 GENDER EQUALITY: POLITICS AND BUSINESS 36
2.8 COMPETITIVE ADVANTAGE 37
CHAPTER 3: EMPIRICAL STUDY 40
3.1 INTRODUCTION 40 3.2 RESEARCH PROCESS 40
3.2.1 Research planning and design 40
3.2.1.1 Data gathering 41 3.2.1.2 Preparation and structuring of questionnaire 41
3.3 IMPALA "GOOD TO GREAT" CHANGE INITIATIVE 42
3.3.1 Introduction 42 3.4 CHANGE MANAGEMENT 43
3.4.1 Communication 43
3.4.2 New structure 45 3.4.3 Choosing change agents 49
3.4.4 Training on diversity management 50
3.4.5 Policies and procedures 50 3.4.6 Mine managers' forum 50 3.4.7 Gender friendly infrastructure and equipment 56
3.4.8 Women structures 56 3.4.9 Talent retention 57 3.4.10 Accelerated development 57
3.5 QUESTIONNAIRE RESULTS ON KEY QUESTIONS 58
3.6 ANALYSIS OF IMPALA STATISTICS 62
3.6.1 Safety statistics 63
3.6.2 Profit 64 3.6.3 Productivity 66
3.7 PRACTICAL REALITY: WOMEN'S STORIES AT IMPALA 66
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS 75
4.1 INTRODUCTION 75 4.2 RECOMMENDATIONS 75
4.2.1 Communication 75 4.2.2 Targets for compliance 76
4.2.3 Change consultants 76 4.2.4 Sustaining change 77 4.2.5 Learning organisation 77 4.2.6 Innovative human resource strategies 78
4.2.7 Warning signs from questionnaire results 78
4.2.8 Resistance to change 79 4.3 RECOMMENDATIONS 79
REFERENCES 80 APPENDIX 1: QUESTIONNAIRE 87
APPENDIX 2: STATISTICS 88
List of diagrams
Diagram 1.1: Diagram 1.2: Diagram 1.3: Diagram 2.1: Diagram 2.2: Diagram 2.3: Diagram 2.4: Diagram 3.1: Diagram 3.2: Diagram 3.3: Diagram 3.4:Impala simplified flow diagram Map of Impala mine locations Layout of dissertation
Lewin change model Kotter change model
Jaffe and Scott resistance to change model Resistance to change model
Impala top executive structure People co-structure
Group talent structure
Group remuneration structure
3 4 10 18 21 28 29 45 46 48 49
List of tables
Table 1.1: Mineral resources
Table 1.2: Women in mining figures Table 3.1: Impala key statistics Table 3.2: Safety statistics
Table 3.3: Injuries (male versus female) Table 3.4: Impala profit margins
Table 3.5: Impala productivity
5 6 62 63 64 65 66
List of graphs
Graph 3.1(a): Graph 3.1(b): Graph 3.2: Questionnaire results 1 Questionnaire results 2 Women: actual figures58 59 64
List of photographs
Photograph 1: Photograph 2: Photograph 3: Photograph 4: Photograph 5: Photograph 6: Photograph 7: Photograph 8: Photograph 9: Photograph 10 Photograph 11 Photograph 12CEO David Brown
Stick transportation underground 1 Stick transportation underground 2 Cheeter saw
Tip hook
Lightweight snatch block Women miners
Pinkey Reit (woman miner)
Lebogang Penyenye (woman shift supervisor) Jeania Mosale (woman onsetter)
Cynthia Masokwane (woman serviceman) Woman miner 44 52 53 54 55 56 67 68 69 71 73 74 x
CHAPTER 1
NATURE AND SCOPE OF THE STUDY
1.1 INTRODUCTION AND BACKGROUND
Women were by law barred from working underground in South Africa until 1997. This was the sole reason why prior to 1997 there were no women underground. Although this ban was lifted in 1997 the underground environment remained somewhat a no-go area to women for various reasons.
In 2004, the South African Government came up with the Mining Charter (SA, 1996c), which recognised that the South African history/legacy resulted in blacks, mining communities and women being excluded in participating in the mainstream of the mining industry. Among other objectives, trying to redress this legacy were the following:
• To ensure high levels of inclusiveness and advancement of women; and
• To aspire to a baseline of 10 percent of women participation in the mining industry within five years,
The Charter's custodians (The Department of Labour and, specifically to the minerals industry, the Department of Minerals and Energy (SA, 1996c) would monitor the industry's compliance. Those companies who failed to comply risked losing their mining licenses.
The Mining Charter required companies to:
• publish an Employment Equity Plan and report on annual progress;
• achieve 40 percent historically disadvantaged South Africans' (HDSAs) participation in management by 2009;
• identify a pool of talent and fast-track them; and
• achieve participation by women of ten percent by 2009.
It is against this background that mining companies were faced not with a problem to be solved, but a polarity that needed to be managed well. The polarity was twofold:
• Mining was generally regarded as a field for men and mining companies for years hired their workforce without any gender quotas; and
• Non compliance to the Charter, which meant less than ten percent of the workforce, as women were to result \n mining companies losing their licenses.
The ten percent by 2009 brought with it a significant change that would reshape human resources. Whilst there seems to be no doubt about the need for change and challenges that women in the mining workplace would bring to human resources, a debate on whether there were to be some business implications raged for time to come.
There are some schools of thought that suggest that the integration of women if not managed through proper Change management interventions would have far-reaching business consequences that would affect financial statements. It is agajnst this background that the author, in consultation with Impala Rustenburg Operations Management, decided to research the change sweeping the mining sector and the effects thereof.
1.2 PROBLEM STATEMENT
Impala Platinum Holdings Limited (Impala) mines, refines and markets Platinum Group Metals (PGMs) - primarily platinum, palladium and rhodium - and related base metals. Below, diagram 1.1 represents a simplified flow diagram showing ore flow from mine to refineries.
IMPALA PLATINUM SIMPLIFIED FLOW DIAGRAM. CCtiZ£',TStf-J*. s a t ' i - I f E l PC-'ATES: a t eF.ojETTt;
Diagram 1.1: Impala Simplified Flow Diagram (Source: Impala 2008 Financial results)
The flow diagram shows that from the underground mines the ore goes to the Mineral Processes section comprising the Concentrator and Smelting plants. Processing in the two plants with a capacity of 2.8 million ounces per annum converts the ore into matte prior to refining. Mineral processing takes place on the surface. The Refineries which include both base metal and precious metals is situated in Springs and is currently under expansion to accommodate an annual throughput of 2.3 million ounces of platinum,
The group has extensive operations on the two most significant Platinum Group Minerals (PGMs) deposits in the world, namely the Bushveld Complex in South Africa, and the Great Dyke in Zimbabwe, and has total attributable resources of 187 million ounces of platinum. The location of Impala mines are shown in Diagram 1.2 below.
Zornbio
■ ttywMn limfadbwi* ■ ' ■ - / . (Namibia
Zimbabwe/
/ in Soum AfricaDiagram 1.2: Map of Impala mine location (Source: Impala 2008 Financial results)
Impala employs some 47 000 people across its operations and, in the 2007 financial year, produced approximately 2.03 million ounces of platinum (around 3.5 million ounces of PGMs). Plans are in place to achieve production of 2.5 million ounces of platinum by 2012. Impala mineral resources and reserves as at June 30, 2007 are shown in table 1.1 below.
M i n e r a l Resources a s a t 3 0 June 2 0 0 7 O w b a d y ■wfey Category SteOSWed indic-ated
4-Cl>;in i>= I Tonne*-(milhon&l l 2 l T 8 9 . 3 UG; Total tanned irvd izated inferred 1 17.8 7 3 . 9 5 9 . 5 Gra:le \g/H 3PGE + A u 6 . 0 6 6 . 1 3 Grade (cj./tl SPGE + A u 6 . 9 4 6 . 8 3 6 . 9 3 6 . 7 5 6 . 9 6 531 .9 6.56 7,0 : 7 , 9 3 9 . 0 3 S . 7 9 9 . 0 6 S.03
Mineral Resource (tailings) a at 30 June 2007
O r e b o d y Category brines (millions) Ft grcKk (g/n P T O Z Imiilbns) 15.4 T t . - f T 10.2 16.3 9.9 S . l 7 1 . 4 P r o z (millions) 1 & 2 tailings ■zornpl*?: indicated j 5.1 0.42 0.6
Mineral Reserves as at 30 June 2 0 0 7 !
G^body C a ^ r / ' S J & %wfe V*> Grade f * ' i | Ft oz ' y 7 Imillims.) 3PGE + AU 5PGE+A.y t in ill >:>ns J
.'■/r?r-=fi :-lcy proved 23.0 A.Cv d.t-t 2.0 .'■/r?r-=fi :-lcy probable 104.7 4.04 4.63 3.9 UG2 pr c ved 2 3 . ; 3.9C 5.06 1.8 UG2 prcbable 105.6 3.89 5.C6 S.2 Tc-tal 256.4 4.0 4.85 20. e
Table 1.1; Mineral resources
(Source: Impala 2008 Financial results]
The mineral resources from both Merensky and UG2 add up to 71.4 million platinum ounces and reserves add up to 20.8 million platinum ounces.
Impala first published its scorecard as required by the Charter in the 2003 Annual Financial report. At that time, only 2.6 percent of the overall workforce were women, with the split as follows:
A mere 2.9 percent worked at the mines, 15 percent at Refineries, 13.4 percent at Mineral Processes and 30.6 percent at the corporate office. The statistics here showed that there was a strong tendency of giving women jobs in offices and shying away from underground,
According to the Charter, Impala were to have 10 percent of their total workforce as women by 2009 which means, at current figures, 3 204 employees. Table 1.2 below shows actual figures for 2007 of FY2008.
Women in mining
Tola! employees/ members
FY2008
Total % women Target
FY2009 Bead 13 4 31 to Senfor management oy 9 O 10 Middle manag&menl 590 115 19 10 Subtotal 700 128 18 10 Skilled 3 9 2 9 i y-- V 10 NorrsMled 27 40c 032 T 10 Total # 32 035 2 496 3 10
Table 1.2: Women in mining
(Source: Impala 2008 Financial results)
Total women employed shown in table 1.2 are 2 496 which represent 8 percent of total employees. Another 708 women, assuming no resignations, still need to be employed to achieve 2009 figures.
Impala has always argued that they are a "people focused" company and believe their competitive advantage is their people from top to bottom. There are many people within the mining fraternity that saw the Mining Charter as an external threat on company effectiveness or competitiveness.
It is against the background of this external threat that this study was done. It is important to examine whether this change brought with it serious challenges on human resources. The research was also useful to indicate to business that it needed a change management strategy to allow Impala to strategically integrate women without affecting its competitiveness. The focus areas on competitiveness will be productivity, profitability, and safety.
The Mining Charter brought a challenge which was twofold. The requirements needed to be communicated to mining stakeholders and to be complied with by 2009.
Change in any organisation brings with it uncertainty, a climate of mistrust, personal conflict, disruption of traditional groupings and new political dimensions. In light of this, if an organisation needs to maintain stability, proper change management and leadership need to be extra-ordinary, because all these elements would cause resistance to change.
1.3 OBJECTIVES OF THIS STUDY
The main objective of this study was to do an in-depth study of how Impala can integrate women into the workplace in order to comply with the Mining Charter law of ten percent by 2009, without losing their competitive advantage.
The issues to be addressed are as follows:
• The Mine challenges; • Mine culture; • Change; • Organisational change; • Cultural change; • Change management; • Change models; • Resistance to change; • Transformational leadership; • Women-specific challenges; • Gender equality; and
1.4 SCOPE OF THIS STUDY
The study focused on Impala Platinum Holdings Limited; however, it draws inferences from the Implats Group and other similar organisations like Impala, and in some cases from the industry in general.
1.5 METHODOLOGY
The methodology followed in this study consists of a literature study, an empirical study, an analysis of safety, production, profitability statistics and recommendations drawn from patterns deduced from the statistics.
1.6 LITERATURE STUDY
An in-depth literature study was done for a sound theoretical understanding of mining related challenges which the "external threat" posed. The literature study also focused on organisational development theories on company culture and its effects on change.
The literature review also paid attention to: • The Mine challenges;
• Mine culture; • Change; • Organisational change; • Cultural change; • Change management; • Change models; • Resistance to change; • Transformational leadership; 8
• Women-specific challenges; • Gender equality; and
• Organisational competitive advantage.
1.7 EMPIRICAL STUDY
The empirical field investigation studied women working underground at Impala, and their trials and tribulations. A questionnaire was designed in order to examine whether the so-called challenges were real issues or not. The study also analysed Impala statistics to see if trends formed between increasing women numbers and the following:
• Safety in terms of lost time for injuries and fatalities; • Profit margins; and
• Productivity.
An analysis of company financial statements, safety statistics, and efficiencies for the last five years were scrutinized to see if any relationship existed between variations and the increasing numbers of women. If the numbers of women were increasing whilst safety, profit, and productivity deteriorated, this would be early signs of the company losing competitiveness.
1.9 LAYOUT OF THIS STUDY
Chapter 2
Literature study Mine challenges Mine culture Change Organisational change Cultural change Change management Change models Resistance to change Transformational leadership Women-specific mine challenges Gender equality Organisational competitive advantageChapter 1
• Problem statement • Study objectives ► *-Women in Mining
Chapter 4 Recommendations ConclusionChapter 3
Research process 'Good to great' change initiative Change management Questionnaire results Analysis of Impala statistics Practical realityDiagram 1.3: Layout of dissertation
CHAPTER 2
LITERATURE STUDY
2.1 INTRODUCTION
The objective of this literature study was to define and explain several topics that relate to change in the context of Mine culture, mining challenges, gender equality, competitive advantage and organisational development interventions.
2.2 MINE ORGANISATIONAL CULTURE
The Mine culture, due to history and the nature of mining and the characteristics of the industry has over the years been somewhat unique. Wynn (2005:1) stated the mining culture is a function of the composition of the workforce and community as it is defined by the attitudes and beliefs held by these people. Breaking down this definition sheds more light on this unique culture.
Composition of workforce: Composition of workforce in terms of sex and tribes also shapes the culture. A woman-free workforce results in some behaviour that is different from what happens in a sex-balanced environment. Such behaviour includes profanity, urinating in the open, working barely naked and so forth.
Community: Mining communities are sometimes in remote areas far away from their original homes. This leads to communities dominated by males leading to social problems in the culture that develops underground and in after-work activities.
Attitudes: The attitude that develops in mines is generally one of finishing work as soon as possible and returning to surface for other activities. This attitude generally leads to shortcuts in terms of safety and selfish ways in an attempt to return to "normal" activities and environment. Other attitudes that developed include the following:
• The hostels and staying far from home led to a culture of drinking; and • Sports and cultural activities thrived.
Beliefs: Beliefs generally take some time to form for people from different backgrounds. Unproven is also talk of different tribes having different beliefs. Examples of other beliefs drawn from the author's personal experience include the following:
• A belief that women would bring bad luck into the workplaces;
• A strong belief that women would not make it given the physical nature of mining; and
• Physical demands of the job brought the culture of "machoness" and perceptions that one had to be tough to succeed as an individual and certain tribes being labeled as suitable for certain jobs.
Anderson and Rosene (2008:18, 58) mention two different types of people that came about because of the physical nature of mining and risk-taking:
"Bullet proof folks ... think they know it all, particularly their jobs ... and they don't think they'll ever be hurt."
and the
"Thrill seekers actually enjoy the thrill of taking risks. They get a 'rush' when they take chances or receive praises."
The fact that mining culture evolved over a long period of time involving locals intermingled with migrant labour meant that the result was not only a complex culture but one which is difficult to change.
2.3 CHANGE
The New Oxford Dictionary of English (2005:287) defines change as an act or process through which something becomes different. The world is a dynamic place which is constantly changing, but it is quite ironic that whenever the word change is mentioned, it is met with apprehension. This is mainly because the pace at which the world is changing has generally exceeded human capacity to adapt.
Organisations are entities that exist also in this dynamic world and are not spared from change. In order to understand change in this sense, one needs to look at organisational change and organisational transformation.
2.3.1 Organisational change
Change within organisations can be divided into internal and external change, with the former being change that is initiated within the organisation and the latter being change that emanates from the environment that the organisation lives in.
Coetsee (2002:192) gives examples of external forces of change as the following:
• Political issues of a world, national or regional nature such as new world markets and new labour legislation;
• Competition, such as global competitors, new mergers and acquisitions, and new opposition;
• New technologies (information technologies), new organisational change and re-engineering; and
• Economic factors - a wide range of forces are important; for example, the oil price, the Rand/US $ exchange rate, interest rate fluctuations and more.
Coetsee (2002:193) explains internal forces as:
• The changing nature of the workforce; for example, changing values and lifestyles of employees, dissatisfaction with the status quo, more cultural diversity, many new entrants with inadequate skills;
• New vision and goals; for example, the appointment of a new CEO; and • Internal pressures to stay viable.
Change can also be divided into small or incremental changes that take the form of fine tuning and transformational change that is large-scale and more radical. Organisational change can involve both fine tuning and radical change with the latter usually more difficult to manage.
2.3.2 Organisational transformation
Organisational transformation implies radical change due to or in response to changes in the environment where the organisation operates in. It follows that transformation in this sense involves change in terms of how people's perceptions, thinking and behavior play out. Within the major features of transformational change, one can observe the following:
• Cultural change;
• Company structures; and
• Organisational learning and knowledge management.
Kotter (1996a:14) maintains that change sticks only when it becomes "the way we do things around here"; when it seeps into the very bloodstream of the work unit or corporate environment. This assertion argues that for change to be sustainable, one needs to impact organisational culture. But what is organisational culture?
2.3.3 Organisational culture
So much has been written and said about organisational culture and the role it plays in the performance of companies around the world. The general definitions mention shared values or assumptions determining how people behave. These definitions include that of Kreitner and Kinicki (2004:81), who define organisation culture as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.
Cummings and Worley (2005:483) argue along the same lines and define culture as the pattern of artifacts, norms, values, and basic assumptions about how organisational problems should be solved. Schein (1992:12) agrees by indicating that it is a pattern of basic assumptions that the group learned as it solved its problems of external adaption and internal integration that has worked well enough to be considered valid and, therefore, to be taught to the new members as the correct way to perceive, think and feel in relation to those problems.
Coetsee (2002:200) supports the earlier opinions and states that an organisational culture includes the 'climate' of an organisation and is based on the shared values, norms, beliefs and traditions that have been established over time in an organisation. It dictates what is acceptable, unacceptable, or the right and wrong in an organisation, and the values and norms people live by in organisations. Bass (1998:62) adds that organisational culture is the "glue" that holds the organisation together as a source of identity and distinctive competence.
Hough's (2008:296) opinion is that culture can be defined as shared values (meaning what is important) and beliefs (meaning how things work) that interact with an organisation's structures and control systems to produce behavioural norms (meaning the way things are done in an organisation).
The dynamic world we live in means culture also has to be dynamic in response to the immediate and the external environment. When the environment changes, in most cases, organisational culture tends to change.
2.3.4 Organisational culture change
Cummings and Worley (2005:479) indicated that a growing body of research has shown that culture can affect strategy formulation and implementation as well as the firm's ability to achieve high levels of performance. Culture change involves helping senior executives and administrators diagnose existing culture and make necessary alterations in the basic assumptions and values underlying organisational behaviour.
Many organisational development practitioners believe that to change an organisation culture is very difficult. Collis and Montgomery (2005:254) substantiate this view saying that embedded in the broader administrative context this is perhaps the hardest thing of all to change - corporate culture. Because it ultimately requires change in people and their attitudes, addressing this can be the most long-term and difficult aspect of corporate transformation.
Young (2007:31) agrees with the above statement by indicating that culture change is hard work. It takes courage, commitment, patience and wisdom. Just because the CEO wants it, it does not mean the organisation will move toward it. It takes a whole organisation that is energized and purposeful to make it happen.
From the above definitions and comments, it is thus clear that to effectively implement a culture change, one needs to start by diagnosing the existing culture and assess whether it supports the business strategies that the company intends following. The simplest approach to this diagnosis is individual and group interviews by a third party; for example, a consulting firm. Interviews focus firstly, on relationships within organisations, between managers and subordinates, peers and between departments. Then the focus shifts to tasks where innovation, decision-making, communication, recognition and reward can be topics to address.
Several authors and practitioners have put forward and motivated some change management models some of which can be used to change cultures. These will be discussed in the next two sections.
2.4 CHANGE MANAGEMENT
Coetsee (2007:73) states that change management is popularly known as organisational development. This statement shows that Coetsee uses the terms change management and organisational development interchangeably, but Cummings and Worley (2005:vi) think organisational development is more than change management. The author, for purposes of this mini-dissertation, uses the terms as the same concept. Change management is the planned application of the knowledge, tools, and resources of change that provides organisations with a 'means to an end' in order to achieve their business strategy. Organisational development is aimed at improving the effectiveness (in terms of productivity, financials and continuous improvement) of organisations by means of systematically planned interventions.
The website of Toolpack Consulting (n.d.) points out a very important fact regarding organisational development. They say organisational development is based on research, not case studies. Case studies can be interpreted differently, depending on what people know and what they already believe. Research into human behaviour isolates and tests key assumptions and relationships, and is more reliable as a basis for change.
The following are some of the primary reasons why companies engage in organisational development interventions:
• To become more dynamic and change adept; • To change their corporate culture;
• To boost employee morale; and • To increase productivity.
The following section discusses change models used to change corporate cultures,
2.4.1 Culture change models
The author's opinion is that culture change models deserve to be a separate dissertation topic and therefore the models that follow are briefly discussed and deemed sufficient for purposes of this research.
According to Campbell, Stonehouse and Houston (2002:205) Lewin suggested in 1947 that organisational change could be understood in terms of three consecutive processes.
The three-stage model of change is depicted in diagram 2.1 below.
UNFREEZING v CHANGE = > RLEZING Unfreeze Change Freeze TIME
Diagram 2.1: Lewin change model
• Unfreeze: Deals with preparing the organisation for change. This generally involves explanations to all stakeholders of what needs to change and why it needs to change.
• Change: Once there is understanding among the stakeholders, action begins. Action takes place after people buy into the need for change. Success depends on continuing to develop a sense of teamwork and active communication among those people in the organisation engaged directly in the change effort and the other members of the organisation who have a stake in the outcome. It is essential that the change agents, especially managers, project team members, and consultants, provide visionary leadership that enables the process, rather than top-down, command-and-control micromanagement that inhibits it. By so doing, the leaders of the change effort can create and maintain the momentum crucial to the success of this phase.
• Freeze: When the transition has achieved some success freezing means consolidation of the organisation in its new mode of operation. Company procedures, remuneration and organisational values are changed to reflect the new status quo.
While Lewin's model does not spell out in detail what change agents need to do to effect change, it provides a good starting point. As such, it is a powerful tool, but \i is not the only one.
According to the website www.everychildmatters.com, for a change programme to be successful and sustainable there must be:
• A compelling reason to change; • A clear vision for the future; and • A coherent plan for getting there.
This means it is imperative to look at a few more change programmes. Kotter (1996b:33) summarized his eight-step change model as:
1. Increase urgency - inspire people to move, and make objectives real and relevant.
2. Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.
3. Get the vision right - get the team to establish a simple vision and strategy; focus on emotional and creative aspects necessary to drive service and
efficiency.
4. Communicate for buy-in - involve as many people as possible, communicate the essentials simply, and appeal and respond to people's needs. De-clutter communications - make technology work for the company rather than against it. 5. Empower action - remove obstacles, enable constructive feedback and lots of
support from leaders. Reward and recognise progress and achievements.
6. Create short-term wins - set aims that are easy to achieve, in bite-size chunks. Ensure manageable numbers of initiatives. Finish current stages before starting new ones.
7. Don't let up - foster and encourage determination and persistence, ongoing change, encourage ongoing progress reporting. Highlight achievements and future milestones.
8. Make change stick - reinforce the value of successful change via recruitment, promotion, and new change leaders. Weave change into culture.
The website www.everychildmatters.com (Anon(b)., n.d.) adopted the Kotter model (in diagram 2.2 below) and split it into three important stages namely, creating a climate for change, engaging and enabling the organisation, and implementing and sustaining change.
mg a dimate for chang<
whole organisation
and sustannq
Get Communicate - M :■■• .• • Create Don't M;l«.f
the for , - ! ' . ■ ■ •> '
short ei 11
nght bjy n term up slick
team
Diagram 2.2: Kotter change model (Source: Anon(b)., n.d.)
However, according to Kotter (1996c:22), the first four steps in the transformation process help to defrost a hardened status quo. Phases 5 to 7 introduce new practices. The last stage grounds the changes in the corporate culture and helps them stick.
Johnson (2002:163) quotes Marquardt who says significant and effective change need the following eight elements:
1. Establish a strong sense of urgency; 2. Form a coalition;
4. Communicate the vision; 5. Remove obstacles; 6. Find short-term wins;
7. Consolidate progress and continue movement; and 8. Anchor change to the culture.
The above model put forward by Johnson (2002:164) is almost the same as Kotter's (1996c:22), but it differs in words. The website Ceoonline.com (2006) suggests the following model which is in line with Kotter's, but adds starting with analysing the organisation as a first step and ensuring a strong leader role.
Ten steps to executing change:
1. Analyse the organisation and its need for change;
2. Create a shared vision and common direction; 3. Separate from the past;
4. Create a sense of urgency; 5. Support a strong leader role;
6. Line up political sponsorship; 7. Craft an implementation plan;
8. Develop enabling structures;
9. Communicate, involve people and be honest; and 10. Reinforce and institute change.
In implementing these models some organisations have complemented the models with a training technique called immersion. This technique was exposed to would-be change agents who were involved in the change model implemented and is discussed in the next section.
2.4.2 Immersion
In defining immersion, Barber (2005:1) states that immersion training offers the best way to communicate a clear message that will quickly change people's behaviour. The relatively dramatic nature of the training also prepares people for receptivity to new information that can, in turn, transform the corporate culture - no matter what leadership wants it to be.
While conceptual learning is important, the major leaps forward - these so-called 'aha!' moments when mental maps are rearranged - are most likely to happen when students encounter these theories experientially. The widespread use of experiential training in the development of the soft skills of leadership and teamwork can transform individuals and the organisation. Experiential training allows for paradigm shifts: as Steven Covey (2004a:29) puts it ...."what we might call the Aha! experience when someone finally sees the composite picture in another way. The more bound a person by the initial perception, the more powerful the Aha! experience is. It's as though the light were suddenly turned on inside."
It is all well to choose a model to implement change, but for success the model needs someone to put theory into action. A change leader is needed who will have a technical role in as far as knowledge of the industry and desired change and an inspirational role is concerned. Such a leader is a transformational leader.
According to human resource practitioners, Change Designs (2008), the technical role involves answering questions such as:
1. What needs to change?
2. What change tools will you use? 3. Who will you involve?
The inspirational role involves answering questions such as: 1. How can we overcome the emotional barriers to change?
3. How can we create heroes to sustain the changes?
4. How do we use the change process to bring out the magic within every individual and every team?
Kotter (1996a:25) agrees by saying that leadership defines what the future should look like; it aligns people with that vision, and inspires them to make it happen despite the obstacles.
Given Kotter's assertion, it is important to understand what a transformational leader is. 2.4.3 Transformational leadership
Transformational leadership is leadership in implementing new ideas, helping the company to be adaptable and continuously improving given the dynamic world.
Bass (1996:19) quotes Professor Beverley Alimo-Metcalfe who says organisations with senior managers who are perceived as transformational leaders - characterised as visionary, enthusiastic, encouraging constructive criticism, and showing genuine concern for others - are significantly more effective than those who influence and control performance through the application of structures, rules and rewards.
Cultural change needs to have full senior management commitment and the website culture.com supports this statement completely by saying cultural change must begin at the top, with the leadership team that sets the stage for everything that happens. People below will change when they look up and see that the top team has changed.
According to Bass (1996:20), the leader transforms by:
1. Making them more aware of the importance of task outcomes;
2. Inducing them to transcend their own self-interest for the sake of the organisation or team; and
3. Activating their higher order needs.
Yukl (2002:241) quoted James McGregor Burns saying that transforming leadership appeals to the moral values of followers in an attempt to raise their consciousness about ethical issues and to mobilize their energy and resources to reform institutions.
Bass and Avolio (1994:3, 4) agree and say transformational leaders behave in ways to achieve superior results by employing one or more of the four I's:
1. Idealised Influence. Transformational leaders behave in ways that result in them being role models to their followers.
2. Inspirational motivation. Transformational leaders behave in ways that motivate and inspire those around them by providing meaning and challenge to their followers' work.
3. Intellectual stimulation. Transformational leaders stimulate their followers' effort to be innovative.
4. Individualised consideration. Individual differences in terms of needs and desires are recognized.
Irrespective of the quality or type of leadership there is always a group or groups of people within organisations that resist change. Unless the need for change is properly explained, people within organisations will always resist change due to fear of the unknown.
According to Cummings and Worley (2005:157), organisations tend to be heavily invested in the status quo, and they resist changing in the face of uncertain future benefits. Kreitner and Kinicki (2004:683) also put forward that there is a great need to unfreeze the organisation by creating a compelling reason for why change is needed. They further by listing ways of sensitizing the organisation as follows:
• Sensitise the organisation to internal and external pressure for change. External forces for change originate from without, and by and large, there are four categories which are demographic characteristics, technological advancement, market changes, and social and political factors. Internal forces
for change come from within the organisation; for example, leadership changes.
• Sensitise the organisation on current and desired statistics. A good example here would be what percentage of female employees a mine has versus what the Mining Charter calls for. The organisation needs to have constant feedback on these figures so as to be sensitive to the gap.
• Sensitise the organisation as to the benefits of change. In order for people within the organisation to support change they need to know what is in it for them and the other general organisational benefits for change.
According to Kotter (1996b:4), whenever human communities are forced to adjust to shifting conditions, pain is ever present. It is this assertion that brings the study to the next topic of resistance to change.
2.5 RESISTANCE TO CHANGE
In order to understand resistance to change one must start by analyzing the word resistance which, according to Derby (2006:19), can be defined in the following way: Resistance is when someone is not doing what you want them to do, or expect them to do. With this understanding of the word resistance, one can analyse definitions of resistance to change and why people resist change.
Bolognese (2002:1) quotes Alvin Zander (1950) who defines resistance to change as the behaviour which is intended to protect an individual from the effects of real or imagined change. Kreitner and Kinicki (2004:685) concur and say that resistance to change is an emotional/behavioural response to real or imaginary threats to a work routine. To add a deeper understanding of resistance to change one has analyse the reasons why people resist change in the first place.
The website Ceoonline.com (2006) is of the view that employee resistance can be triggered by many fears. These can include fear of:
• Redundancy; • Loss of security; • Disorganisation; • Loss of status; • Ability to cope; and
• Loss of existing relationships.
Cummins and Worley (2005:158) go a step further and split reasons for resistance to change into three categories, namely:
• Technical resistance: Technical resistance comes from the habit of following common procedures and the consideration of sunk costs invested in the status quo.
• Political resistance: Political resistance can arise when organisational changes threaten powerful stakeholders.
• Cultural resistance: Cultural resistance takes the form of systems and procedures that reinforce the status quo, promoting conformity to existing values, norms and assumptions about how things should operate.
Wynn (2005:2) also investigated resistance to change and lists the following as the top ten reasons why employees resist change:
1. The individual's personal predisposition to change; 2. Surprise and fear of the unknown;
3. Climate of mistrust; 4. Fear of failure;
5. Loss of status and/or job security; 6. Peer pressure;
7. Disruption of cultural traditions and/or group relationships; 8. Personality conflicts;
9. Lack of tact and/or poor timing; and 10. Not seeing the benefits.
Jaffe and Scott (1999:84) add that resistance to change often arises from elements of culture, such as special interests, narrow focus of attention by specialized functional groups, and the effects of previous attempts at change.
Given the variety of reasons why people within organisations resist change, it follows that they go through different stages of coping with this change. Jaffe and Scott presented a simple model as follows:
Diagram 2.3: Jaffe and Scott resistance to change model (Source: Jaffe & Scott, 1990)
McLennan (2007:295) states that Jaffe and Scott describe change as a natural progression through a series of four phases: denial, resistance, exploration, and commitment. To successfully deal with change, employees must pass through all four phases.
People in the denial stage would be saying "this change will not work or is not necessary". Those in the resistance stage are the ones that say, "I do not support this
change and will not be part of it." The people in the exploration stage are the ones who are willing to try it. Finally, the people in the commitment stage are the ones that are committed to the change and are busy trying to implement the change.
According to a more elaborate model, stages are listed as:
SHOCK & DENIAL Avoidance Confusion Fear Numbness Blame ANGER Frustration Anxiety Irritation Embarrassment Shame COMMITMENT Empowerment Security Self-esteem Meaning ACCEPTANCE • Exploring options • A new plan I place
DIALOGUE & BARGAINING Reaching out to others Desire lo tell one s slory Struggling to find meaning for what has happened DEPRESSION & DETACHMEN'
■ Overwhelmed • Lack of Energy ■ Helplessness
Time Diagram 2.4: Resistance to change model
(Source: Coetsee, 2007)
• Shock: These individuals feel overwhelmed by the change. The feel as if they were "frozen". They are unable to reason or plan.
• Denial: The individual denies that change actually exists or minimizes its importance.
• Depression and anger: Slowly the individual begins to realize that the change has in fact occurred. He doubts his ability to cope and the result is depression or anger.
• Dialogue and accepting reality: The individual lets go of the current situation. They accept that things have changed and start to break links with the past. Acknowledgement of reality is the turning point for an individual's adaptation and adjustment.
• Commitment: The individual feels he is part of the change. He is not threatened by change and he is so empowered that he acts as a change agent.
It is these stages, as indicated in diagram 2.4 above, which if recognized and properly taken into account, can help managers to manage resistance to change. According to Wynn (2005:3), it is important to note that people in the organisation will proceed through the different phases at different rates of speed. To make things even more complex, the cycle of change is not linear. It is because of this, that resistance to change needs to be managed well for a smooth transition when changes are implemented.
2.5.1 Managing resistance to change
Cummings and Worley (2005:159) list three major strategies of overcoming resistance to change as:
1. Empathy and support. This strategy can identify people who are having trouble accepting the changes, the nature of their resistance, and possible ways of overcoming it, but it requires a great deal of empathy and support.
2. Communication. One strategy is to makes change information more salient by communication through a new or different channel. If most information is delivered through memos and e-mails, change information can be sent through meetings and presentations.
3. Participation and involvement. One of the oldest and most effective strategies for overcoming resistance is to involve organisation members directly in planning and implementing change.
If change and resistance thereof is managed properly, companies that perform well can continue to do so even in the process of change. It goes without saying that if change is managed properly a company with a competitive advantage can maintain it.
2.6 MINING CHALLENGES
Mining is, in general, challenging due to a number of factors:
• Physical conditions presented by the underground environment;
• Physical strength needed to do the job because of its manual nature; and • Ever-changing physical underground conditions.
Men and women, however, experience other specific challenges which will be discussed below.
2.6.1 Challenges specific to women
In addition to the general challenges mentioned above, there are other challenges that are specific to women. They differ from men both physically and physiologically, and a workplace or work system, including technology designed for men, in some respects, would be unsuitable for women.
2.6.1.1 Male-friendly environment
The mining industry, owing to history, has been male-friendly which meant that there were problems to recruit and fit women in the workplace. In a speech to the Whitehall and Industry Group Women's network group lunch, Cynthia Carroll, CEO of Anglo American pic (2007) said that in order to bring more women into the ranks, the company will need to adapt its working practices and culture.
She also added that present workplaces certainly are not gender neutral; they reflect the fact that, for decades, the workforce has been overwhelmingly male.
The toilets used underground provided no privacy as they were just open toilets. In addition, some machinery ergonomics were made with men's body dimensions in mind. Body dimensions are important with regard to the design of mining equipment, and its efficient operation. Much of the equipment used in South African mines are designed overseas for use by men (and, indeed, women) who tend to be significantly taller than the average South African woman.
2.6.1.2 Physical capability
Campbell (2007:4) quotes Schutte and said that women are not physically identical to men, "Specifically for mining, the differences in physiological make-up must be accommodated - these are not insurmountable, but they must be managed." Campbell (2007:4) adds to this quote by Schutte that women's maximum aerobic capacity is 15 percent to 30 percent less than men's. As a result, women doing the same physical task as men will tire more quickly.
Wynn (2005:1), concurring with Campbell says that in order to achieve independence and credibility in the eyes of employees (and have the ability to complete everyday work), a female employee needs a sound level of overall fitness in the tasks required. This includes the ability to carry heavy objects and work both outside, underground and in confined spaces, often in hot conditions for extended periods of time.
Hermanus (2007:532) supports Carroll, saying that women in mining face greater risks to their safety than men, because they use machinery, tools and equipment that have been designed for men. Furthermore, given that the physical demands of mining are matched to physiology of a select group of men, women face increased risks of injury and ill-health.
However, Wynn (2005:1) asserts that provided manual tasks conform to the occupational health and safety standards of the mine, anyone should be capable of doing the job. One method that the mines use to check physical capability is by doing heat tolerance tests. A thermal stress management programme is in place at most mining operations, given the higher temperatures present in the deeper level underground workings. Every underground employee undergoes heat tolerance screening which is followed by a closely supervised 12-hour self-acclimatisation shift in a hot underground environment.
Impala (2008 Financial Results) acknowledges that in light of the increasing number of women working underground and an observed predisposition by women to heat intolerance, heat stress management is an issue of greater concern and is receiving the necessary attention. Approximately 30 percent of 1 569 women tested failed the heat tolerance screening, while only four percent of the 14 346 men tested failed the test.
2.6.1.3 Menstruation
Menstruation is the process in a woman of discharging blood and other material from the lining of the uterus at intervals of about one lunar month from puberty until menopause, except during pregnancy. Different women handle menstruation differently, some feeling little discomfort whilst others struggle. Most local companies have not done anything specific to address this issue except to offer facilities which are women friendly in terms of privacy.
2.6.1.4 Pregnancy
Underground workers are exposed to radiation. Radiation has serious consequences for pregnant women and the unborn baby. Therefore, they are not allowed underground for the time they are pregnant. Some employers and managers view pregnancy as a woman problem and see it as an adverse effect on production and productivity whilst others view it as a societal challenge that needs to be managed in the workplace. It is,
however, against the law to discriminate against pregnant women. Companies draw up policies and procedures to act as guidelines on how to deal with this issue in the workplace. Central to company policies is maternity leave in terms of when women should go, the duration thereof and remuneration during the pregnancy.
Campbell (2007:5) quotes Reichardt who asserts that there are many challenges in deploying women in deep-level mining, "There are constraints around the child-bearing years, but our strengths outweigh our weaknesses: women are not a problem, women are an opportunity ... I couldn't imagine a better industry to work in than mining: you can do practical problem solving and make a difference, if that's your definition of a successful career, then mining is a great place for you."
The law in South Africa is clear on pregnancy and states the following:
Section 26(1) of the of Employment Act (BCEA) (SA, 1997) prohibits employers from requiring or permitting a pregnant employee or an employee who is breast-feeding to perform work that is hazardous to the health of the employee or the health of her child.
2.6.1.5 Lactation
Lactation describes the production of milk from breasts, the provision of that milk to the infant, and the period of time that a mother breastfeeds her young, commonly referred to as breastfeeding.
After childbirth, the establishment of a good milk supply is very important and supply is stimulated by frequent and effective suckling. It takes from four to six weeks of exclusive breastfeeding for the mother's milk supply to become well established. It is therefore important that employers permit workers to take maternity leave for this period.
According to the Code of Good Practice on the Arrangement of Working Time section 5.6, arrangements should be considered to accommodate the special needs of workers such as pregnant and breastfeeding workers, workers with family responsibilities, older
workers, disabled workers or workers with health problems, and also workers' personal preferences for the scheduling of their own free time.
Different companies have different approaches to helping nursing mothers fulfil their breastfeeding duties. Some companies provide only maternity leave and do not deal with lactation per se. Other companies have provided nurseries near their companies where breastfeeding mums can have access to their children during tea and lunch breaks. It is, however, difficult for mums to have this facility on the mines due to logistical problems of shaft schedules and the environmental dust problems.
The unique challenges that women face do not mean they waiver their rights to gender equality.
2.6.1.6 Sexual harassment
According to the Commission of Conciliation, Mediation and Arbitration's (CCMA, 2008) Code of Good Conduct on Sexual Harassment, sexual harassment is unwanted conduct of a sexual nature. The CCMA lists forms of sexual harassment as follows:
1. Sexual harassment may include unwelcome physical, verbal or non-verbal conduct, but is not limited to the examples listed as follows:
• Physical conduct of a sexual nature includes all unwanted physical contact, ranging from touching to sexual assault and rape, and includes a strip search by, or in the presence of the opposite sex
• Verbal forms of sexual harassment include unwelcome innuendoes, suggestions and hints, sexual advances, comments with sexual overtones, sex-related jokes or insults, or unwelcome graphic comments about a person's body made in their presence or directed toward them, unwelcome and inappropriate enquiries about a person's sex life, and unwelcome whistling directed at a person or group of persons.
• Non-verbal forms of sexual harassment include unwelcome gestures, indecent exposure, and the unwelcome display of sexually explicit pictures and objects.
• Quid pro quo harassment occurs where an owner, employer, supervisor, member of management or co-employee, undertakes or attempts to influence the process of employment, promotion, training, discipline, dismissal, salary increment or other benefit of an employee or job applicant, in exchange for sexual favours.
2. Sexual favouritism exists where a person who is in a position of authority rewards only those who respond to his/her sexual advances, whilst other deserving employees who do not submit themselves to any sexual advances are denied promotions, merit rating or salary increases.
2.7 GENDER EQUALITY: POLITICS AND BUSINESS
Gender equality is defined as the on par valuing of contribution of men and women ignoring stereotypes that generally inhibit either to equally contribute or benefit from society development. The Commission of Gender Equality maintains that gender equality entails that the underlying causes of discrimination are systematically identified and removed in order to give women and men equal opportunities in every sphere of life. The Commission, however, recognizes that in some cases an organisation needs to treat men and women differently to achieve sameness in results, because the same treatment of men and women does not necessarily lead to sameness in results.
In South Africa, the Commission of Gender Equality (1996) was set up to advance and make recommendations on issues affecting women. The Commission on Gender Equality co-operates with other institutions set up under the Constitution to promote human rights and democracy, including the South African Human Rights Commission and the Public Protector.
The business case for gender equality, according to the Gender Commission, involves the following:
• Discriminating against gender is illegal and brings with it negative consequences to company image;
• Treating employees the same irrespective of gender creates a good company image which helps in attracting and retaining employees which can ultimately make the organisation an "employer of choice";
• It costs money to train people discriminated against and then lose them;
• Damage control in the aftermath of damning reports of sexual discrimination and harassment costs a lot of money and so does lawsuits that the company defends; and
• Discrimination on sexual grounds divides the workplace into camps which generally affects productivity.
If change management and gender equality are not managed properly, this can sift through to companies' competitive advantage being affected.
2.8 COMPETITIVE ADVANTAGE
A competence is an activity that a company is good at doing and it becomes a core competence if it becomes a competitively important activity that the company performs better than its other activities. The ultimate is developing a distinctive competence which represents an activity that a company performs better than its competitors.
Hough (2008:112) maintains that it is always easier for a company to build a competitive advantage when it has a distinctive competence in performing an activity important to market success, when rival companies do not have offsetting competencies, and when it is costly and time consuming for its rivals to imitate the competence.
The website (Anon(a), n.d.) com defines competitive advantage as a condition which enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.
It is, however, interesting that when one sifts through Impala publications one discovers that the company identifies its people as their competitive advantage. Irnpala has over the years performed ahead of its peers in terms of safety, productivity, and profitability. The competitive advantage for Impala has been identified by former CEO Keith Rumble as "Impala Employees". A question then arises: Can one regard employees as a competitive advantage? The answer is a big YES, but needs qualification.
Cronje et al. (2003:192), quoting Jeffery Pfeffer, say that what separates top performing companies from their competitors is the way they treat their workforces. He argues that companies that invest in their employees create long-lasting competitive advantages that are difficult for other companies to duplicate.
According to Pfeffer (1994:16), achieving competitive success through people involves fundamentally altering how management thinks about the workforce and the employment relationship. It means achieving success by working with people, not by replacing them or limiting the scope of their activities. It entails seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoided. Firms that take this different perspective are often able to successfully outmanoeuvre and outperform their rivals.
It is fundamentally important to note that managing change involves working with people. It is therefore very important that one regards management of people as crucial to the success of the organisation. Pfeffer (1994:6) makes the point that people, and how they are managed are becoming more important, because many other sources of competitive success are less powerful than they were. It therefore goes without saying that one should realise that as organisations change their people should be managed
well and, better still, the change management strategy should shift to regarding people as a source of competitive advantage.
CHAPTER 3
EMPIRICAL STUDY
3.1 INTRODUCTION
Impala has made strides in employment of women since women were allowed into mines and more significantly, after the Mining Charter targets were spelt out in 2004.
The goal of this empirical study is thus to investigate the following issues:
• Impala change management - "Good to Great" initiative;
• Investigate how Impala has progressed in employing and integrating women; • Challenges that Impala encountered in integrating women;
• The stories women tell in their experiences; and
• How the increasing women numbers has affected Impala's performance.
3.2 RESEARCH PROCESS
For purposes of this research, the approach of interviews and questionnaires was adopted because it suited the qualitative nature of research.
3.2.1 Research planning and design
Research design specifies methods and procedures for data collection, measurement and analysis. The size of the population, which in this case was 2 500 women, was impractical in terms of time available and costs thus forcing the research to be restricted to a sample of 150. The sample was divided into two main sections:
• 100 women were approached to fill in questionnaires from 8 and 12 Shafts: 8 Shaft being a conventional shaft and 12 Shaft having both trackless and conventional;
• 50 women, who were at the training centre in supervisory training including learner miners, learner officials and graduates.
3.2.1.1 Data gathering
Questionnaires were handed out to the ladies during their morning meetings accompanied with envelopes. After completion, there was a ballot-type box made available for collection. This method ensured confidentiality and quick collection of all 150 questionnaires.
3.2.1.2 Preparation and structuring of questionnaire
The questionnaire (see Appendix 1) was logically structured with a sensible flow from one section to the other, shying away from disorientating the respondent. The literature study in Chapter 2 formed a solid base of issues that the research needed to ask questions on. Critical aspects of the questionnaire questions were:
• Gender equality; • Physical capability; • Pregnancy;
• Sexual harassment; and • Career prospects.
The survey questionnaire was constructed consisting of 32 questions divided into five critical areas using a five-point Likert-scale which ranged from strongly disagree to disagree to neither disagree nor agree to agree and strongly agree.
A pilot test in which five ladies were chosen was done to test the content and language of the questionnaire. The pilot test showed that the questions were simple and well understood.
3.3 IMPALA "FROM GOOD TO GREAT" CHANGE INITIATIVE
3.3.1 Introduction
In October 2007, Impala Platinum Holdings Limited introduced an organisational review which many saw as ironic, because the company was not experiencing any serious problems, but were actually on a high with record profit. The diagnostic findings were gathered by means of:
• Interviews; • Surveys;
• Desk research; and • Workshops.
The diagnostic findings showed that there was a need to make some changes. The primary reason for change was future aspirations given the dynamic environment of the mining industry. The most important reasons for change were the following:
• The current structure was envisioned as not being able to handle expansions of four million ounces of refined platinum over the next decade;
• Refocus on employees because of turnover rate on key positions; • Unclear accountabilities; and
• Changing legislation.
